Search arXivSearch

arXiv · 2509.10795

The impact on health system expenditure in Australia and OECD countries from accelerated NCD mortality decline through prevention or treatment strategies to achieve Sustainable Development Goal Target 3.4

Abstract

Background: It is unclear what the relative impacts of prevention or treatment of NCDs are on future health system expenditure. First, we estimated expenditure in Australia for prevention vs treatment pathways to achieve SDG target 3.4. Second, we applied the method to 34 other OECD countries. Methods: We used GBD data to estimate average annual percentage changes in disease incidence, remission, and CFRs from 1990-2021, and projected to 2030 to estimate business-as-usual (BAU) reductions in NCD mortality risk (40q30). For countries not on track to meet SDG3.4 under BAU, we modelled two intervention scenarios commencing in 2022 to achieve SDG3.4: (1) prevention via accelerated incidence reduction; (2) treatment via accelerated increases in remission and decreases in CFRs. Australian disease expenditure data were input into a PMSLT model to estimate expenditure changes from 2022 to 2040. Assuming similar expenditure patterns, the method was applied across OECD countries. Findings: In Australia, current trends project a 25% reduction in 40q30 by 2030, short of the 33.3% SDG3.4 target. Achieving this requires a 2.53 percentage point (pp) annual acceleration in incidence decline (prevention) or 1.56pp acceleration in CFR reduction and remission increase (treatment). Prevention reduces disease expenditure by 0.72%-3.17% by 2030 and 2040; treatment initially increase expenditure by 0.16%, before reducing it by 0.98%. A treatment scenario reducing only CFRs increased expenditure initially; increasing remission alone achieved savings similar to prevention. Only Sweden, Ireland, and South Korea were on track to meet SDG3.4. Other OECD countries showed similar expenditure impacts to Australia. Interpretation: Whether reducing NCD mortality saves money depends on pathway taken (prevention or treatment). Care is needed when linking NCD mortality reduction to health system savings.

Explore related subjects

Keep this discovery

Explore connections, maps & timelines

BibTeXRIS

Bibha Dhungel, Jingjing Yang, Tim Wilson, Samantha Grimshaw, Emily Bourke, Stephanie Khuu, Tony Blakely. 2025-09-13. The impact on health system expenditure in Australia and OECD countries from accelerated NCD mortality decline through prevention or treatment strategies to achieve Sustainable Development Goal Target 3.4. https://arxiv.org/abs/2509.10795

Cite the original work for its findings. Save a collection to share your selection of sources.

KEEP EXPLORING

Related papers

Access to Live AI Advice and Behavior Under Risk: An Incentivized Experiment

Generative AI has become an everyday advisor, and the systems people consult are live and interactive, not pre-scripted. We ask whether access to such a system changes behavior under risk. In an incentivized experiment (N = 158), participants made lottery choices with an optional decision aid presented as a conventional pre-written tool, a live one-shot AI, or a live interactive AI they could query, with information format held equivalent across conditions. Risk preferences are elicited via DOSE. We find no evidence that access to a live AI advisor changes risk aversion.

econ.GN

Bricks or Cash? Externalities of Housing Upgrading in High-density Cities

We estimate housing externalities in a high-density city, exploiting the staggered rollout of Singapore's nationwide Main Upgrading Programme for public housing. Controlling for nonrandom neighborhood exposure, we find that upgrading raises treated buildings' prices by 11.5% upon completion and neighboring buildings' resale prices by about 2% within 500 meters, decaying to zero beyond. A model with distance-decaying externalities shows that in dense settings spillovers justify the distortions of in-kind provision; this advantage diminishes and reverses at lower densities. Administrative data on over 2 million residents show that upgrading disproportionately retains older incumbents, suggesting age-specific amenities as an underexplored externality channel.

econ.GN

The Joneses Visit an Economics Lab

Existing literature offers persuasive evidence that individuals care about how their consumption compares to that of peers, and proposes a large variety of explanatory models. The present paper proposes a common framework for many of those models, and compares their ability to predict behavior in a laboratory experiment. We find evidence of Keeping up with the Joneses motivations but also find that conspicuous consumption is enhanced by Veblen motivations arising from peers' ability to observe one's own choice. Among the seven quasi-linear preference models we compare, our data are best explained by a model that contrasts envy and pride (upward vs downward comparisons) using a value function borrowed from Prospect Theory.

econ.GN